Fed convenes meeting with a governor newly appointed by Trump and another he wants to oust
WASHINGTON (AP) — After a late-night vote and last-minute ruling, the Federal Reserve began a key meeting on interest rate policy Tuesday with both a new Trump administration appointee and an official the White House has targeted for removal. With those two in place, the Fed’s two-day meeting could be unusually contentious for an institution that typically prefers to operate by consensus. The White House said it would appeal a ruling late Monday that allowed Fed governor Lisa Cook to remain on the board despite President Donald Trump's attempt to fire her.
Retail sales up 0.6% in August from July even as tariffs hurt jobs and lead to price hikes
NEW YORK (AP) — Shoppers increased their spending at a better-than-expected pace in August from July, helped by back-to-school shopping, even as President Donald Trump’s tariffs are starting to hurt the job market and lead to price increases. Retail sales rose 0.6% last month from July, when sales were up a revised 0.6%, according to the Commerce Department’s report. In June, retail sales rose 0.9%, the government agency said. The August performance, announced Tuesday, was also likely helped by the continued efforts by Americans to keep pushing up purchases ahead of expected price increases. The retail sales increases followed two straight months of spending declines in April and May.
FDA takes aim at Hims & Hers, weight loss drugs in new advertising blitz
WASHINGTON (AP) — The Trump administration has issued its first warnings to online services that offer unofficial versions of popular drugs like the blockbuster obesity treatment Wegovy. The Food and Drug Administration on Tuesday sent letters to Hims & Hers and dozens of other companies, ordering them to halt “false and misleading” statements about their medications. It's the first time regulators have gone after online prescribing services, which don't typically fall under FDA authority. The FDA says that Hims must drop language comparing its compounded drugs to brands like Wegovy, which are approved by the FDA.
Tesla under investigation after parents say faulty door handles trapped their kids in the back
Federal auto safety regulators opened an investigation Tuesday into a possible defect in Tesla door handles that have reportedly left parents unable to reach into back seats to get their children out of the cars. The National Highway Traffic Safety Administration said that its preliminary evaluation is for the 2021 Tesla Model Y. The agency said that the electronic door handles of the vehicle may become inoperative due to low battery voltage and impede vehicle reentry and leave passengers trapped inside. The agency said it received four reports of parents breaking windows to remove a child. The investigation covers approximately 174,300 of the midsize SUVs.
Parents of teens who died by suicide after AI chatbot interactions testify to Congress
Parents of teenagers who died by suicide after interacting with AI chatbots testified before Congress. The parents of 16-year-old Adam Raine of California and 14-year-old Sewell Setzer of Florida were speaking at a Senate hearing about the dangers of AI chatbots. Raine's family sued OpenAI last month, claiming ChatGPT played a role in Adam's suicide in April. Setzer's family sued Character Technologies, alleging its chatbot contributed to the boy's death. OpenAI announced new safeguards for teens ahead of the hearing. The Federal Trade Commission has also launched an inquiry into potential harms to children using AI chatbots.
The Fed faces economic uncertainty and political pressure as it decides whether to cut rates
WASHINGTON (AP) — The Federal Reserve is facing economic uncertainty and political pressure as it meets this week to decide whether to cut interest rates. Investors expect the Fed to reduce its benchmark interest rate by a quarter point, to about 4.1%. But it's not even clear which Fed officials will be making the decision. The meeting will likely include embattled governor Lisa Cook unless the Supreme Court rules in favor of an effort by President Donald Trump to remove her from office. It will also include Stephen Miran, a top White House economic aide whom Trump nominated to fill an empty seat on the Fed’s board. The Senate confirmed Miran late Monday in a vote largely along party lines.
Senate approves White House economist Stephen Miran to serve on Federal Reserve board
WASHINGTON (AP) — The Senate has approved one of President Donald Trump’s top economic advisers for a seat on the Federal Reserve’s governing board, giving the White House greater influence over the central bank just two days before it is expected to vote in favor of reducing its key interest rate. The vote to confirm Stephen Miran was largely along party lines. His nomination has sparked concerns about the Fed’s longtime independence from day-to-day politics after he said during a committee hearing earlier this month that he would keep his job as chair of the White House’s Council of Economic Advisers, though he would take unpaid leave.
What to know about TikTok, its algorithm, and the US-China deal to keep it running
A central question to TikTok’s potential shutdown saga has been whether the popular social video platform would keep its algorithm — the secret sauce that powers its addictive video feed — after it’s divested from Chinese parent company ByteDance. Now, it appears that it can. Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, told reporters in Madrid Monday there was consensus on authorization of the use of intellectual property rights such as the algorithm — a main sticking point in the deal. But while China has agreed that a divested TikTok could use its algorithm, it’s uncertain how that would work.
Democrats plan to force Senate vote on Trump's tariffs on Canada and Brazil
WASHINGTON (AP) — Democratic Sen. Tim Kaine is planning to force two Senate votes on President Donald Trump’s tariffs in the coming weeks, keeping the pressure on his Republican colleagues as many of them have voiced frustration with the policies. The Virginia senator says he will introduce two separate resolutions this week that would terminate the national emergencies that Trump declared to justify the tariffs he has imposed on Canada and Brazil. In April, four Republicans voted with Democrats to block Trump’s tariffs on Canada, but the House never took it up.
Asian benchmarks are mixed after Wall Street edges down from record highs
TOKYO (AP) — Asian shares are trading mixed after U.S. stocks edged down from record highs and as market focus turned to expectations for the Federal Reserve’s first interest rate cut of the year. Benchmarks rose in Wednesday morning trading in Tokyo and Hong Kong, while falling in Sydney and Seoul, and being little changed in Shanghai. In Japan, the Finance Ministry reported the nation's exports to the U.S. dropped 13.8% in August compared to the same month the previous year, marking the fifth straight month of declines, as auto exports declined amid President Donald Trump’s tariffs. Shares fell on Wall Street.
